Corporate News Blog – Equity Bancshares Announces Two Merger Agreements; Set to Expand in Oklahoma Area

LONDON, UK / ACCESSWIRE / July 19, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Equity Bancshares, Inc. (NASDAQ: EQBK), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=EQBK. The Company announced on July 17, 2017, that it has entered into two definitive agreements with Oklahoma-based banks. The Company entered into definitive merger agreements with Oklahoma-based, Eastern National Bancshares, Inc., the parent of The Eastman National Bank of Newkirk, and Cache Holdings, Inc., the parent Company of Patriot Bank of Tulsa, Oklahoma. The Company plans to close the mergers simultaneously in Q4 2017. For immediate access to our complimentary reports, including today’s coverage, register for free now at:

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The Announcement

Post these two mergers, Equity Bancshares will have completed 13 successful integrations in the first 15 years since its inception in 2012. These current acquisitions add a fourth state, i.e., Oklahoma to its Midwestern footprint, where both are in close proximity to the Company’s corporate office in Wichita. Equity reported $2.40 billion in consolidated total assets, net loans of $1.51 billion and deposits of $1.82 billion as of March 31, 2017. The Company operates 37 branch offices in Arkansas, Kansas, and Missouri. Post the execution of the agreements, the Company expects to have $3.01 billion in consolidated total assets, including 42 branch offices across the four-state footprint, including Oklahoma.

The Acquisitions

Eastman National Bank -Eastman primarily conducts banking business through four full-service branch locations in Kay County, Oklahoma, including branches in Ponca City, Oklahoma and the Eastman branch in Newkirk, Oklahoma, which was established as The Eastman National Bank of Newkirk. As of March 31, 2017, Eastman has net assets of $254 million, net loans of $181.5 million, and $217.6 million in deposits. At the close of the transaction, Eastman will merge with Equity Bancshares, subject to receipt of regulatory approvals and closing conditions including Eastman’s shareholder’s approval.

Under terms of the agreement, the shareholders of Eastman are entitled to receive a consideration of about $242.72 per share. The definitive agreement also states that each outstanding share of Eastman’s common stock will represent the right to receive a fixed exchange ratio of 6.1389 shares of Equity Bancshares’ Class A stock and $48.91 in cash. The aggregate transaction value is about $46.6 million, subject to Equity Bancshares’ closing stock price on July 14, 2017, and is subject to equity adjustments prior to closing. Equity Bancshares expects the merger to be about $0.20 accretive to diluted EPS in 2018, and $0.21 accretive to EPS in 2019, with transaction-related and one-time costs of $4.6 million.

Patriot Bank – The Tulsa, Oklahoma based bank was established in 1995 and focuses on commercial loans and treasury services to the Tulsa community. As of March 31, 2017, Patriot had total assets of $320.0 million, loans of $287.7 million, and $271.6 million in deposits. The Company held a market share of 1.01% as of June 30, 2016, in the Tulsa metropolitan statistical area. At the close of the transaction, Patriot’s parent Company will merge with and into Equity Bancshares, subject to receipt of customary regulatory approvals and closing conditions, including the approval of Patriot’s shareholders.

Under terms of the agreement, Patriot’s shareholders are entitled to receive an aggregate consideration of about $2,288.33 per share, where the agreement states that each outstanding share of Patriot’s common stock will represent the right to receive a fixed exchange ratio of 53 shares of Equity Bancshares’ Class A common stock and $615.12 in cash. The aggregate transaction value stands at $50.5 million and is subject to equity adjustments prior to closing. Equity Bancshares expects the merger to be $0.15 accretive to diluted EPS in 2018 and $0.16 accretive to EPS in 2019, with one-time costs of $2.7 million.

Last Close Stock Review

Equity Bancshares’ share price finished yesterday’s trading session at $34.43, climbing 1.56%. A total volume of 93.96 thousand shares has exchanged hands, which was higher than the 3-month average volume of 46.74 thousand shares. The Company’s stock price soared 12.19% in the last three months, 5.13% in the past six months, and 48.92% in the previous twelve months. Additionally, the stock gained 2.35% since the start of the year. Shares of the Company have a PE ratio of 31.13 and currently have a market cap of $416.26 million.

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